Pristine pads set to sparkle on spring market

The new home at 2 North Court, Forest Hill, sold strongly at auction.

New and renovated properties are set to be the stars on the spring property market, as those that require work suffer amid materials and trades shortages.

A new five-bedroom house in Forest Hill attracted a $103,000 bonus, while another five-home with nothing to be done to it in Glen Waverley topped its reserve by $30,000 last Saturday.

The big results were among 842 auctions realestate.com.au was expecting across Melbourne last week, recording a 58 per cent early clearance rate from 645 reported results.

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WBP Group executive chairman Greville Pabst said new and fully renovated homes in good locations were continuing to sell well at most price points, with buyers willing to participate.

“Properties with limitations or compromise are staying on the market for extended periods of time, whereas new or fully renovated properties are still selling,” he said. “With uncertainty in the market, many vendors are reluctant to reduce the price to meet the market.

“It is a strategy that is proving unreliable as many buyers are holding off due to uncertainty around further rate rises.”

But Real Estate Institute of Victoria president Richard Simpson believes buyers are adjusting to the rising interest rate environment and expects spring to be “a real test”.

The new Forest Hill pad at 2 North Court fetched $1.903m off a $1.8m reserve with five bidders via Ray White Blackburn’s Peter Schenck.

“Because this is almost a brand new home, we had so much interest from buyers wanting to avoid building costs or buying off the plan,” Mr Schenck said. “If people have a modern home and are considering making a move, there is huge demand right now.”

The house at 4 Mulgrave St, Glen Waverley, fetched $30,000 more than reserve.

The Glen Waverley house, at 4 Mulgrave St, fetched $3.38m with a quoted range of $3.1m-$3.4m and reserve of $3.35m, reported Sold By Group auctioneer Andy Reid.

Meanwhile, Property Home Base founder Julie DeBondt-Barker has noted if buyers are willing to pick up an “ugly duckling” property — one that requires work — this spring, they could get a good deal as this was what buyers were largely avoiding in the current environment.

Some older homes with development potential are still attracting strong results, with the four-bedroom house at 955 Drummond St, Carlton North, selling for $3.3m to be one of the week’s top auction results, from a $2.92m-$3.2m price guide through Woodards Carlton.

And an old house with endorsed plans for two four-bedroom homes at 6 Sonia St, Donvale, had six bidders to sell for $1.356m on a $1.25m reserve, Mr Reid reported. “These have been struggling because of costs to build, but this one had serious competition,” he said.
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scott.carbines@news. com.au

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